Expensive estate homes in demand

Although security estates make up about 5 % of the 6.8 million properties analysed by Lightstone, which provides information, valuations and market intelligence, its total value is about the same size as the total value of the property market in Johannesburg.

Estate properties have about a 15 % share of total property-market value, said Paul-Roux de Kock, analytics director for Lightstone, at a property event held at Val de Vie in Paarl on Thursday.

Over 50% of estates – which include golf, equestrian and polo, coastal, lifestyle, country and wildlife estates – are located in Gauteng, and a further 25% in the Western Cape. The Western Cape segment, however, has the largest total value.

The average price of an estate home is R2m, almost three times the national average of R700 000 for a home.

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Research by Lightstone found there are about 6 500 closed community or estates in SA. About two thirds of estate properties are worth more than R 1m – a lot different to the general property market.

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According to De Kock there has been increased activity in the estate market, especially in the Western Cape, due to security concerns and the lifestyle it can offer. About R 15 bn worth of estate properties are traded about every quarter.

“During an upswing, estate properties usually peak at a lower rate, but during a downturn they even out sooner, which is good for owners of properties in estates,” explained De Kock.

In Jeffreys Bay, the secure estate of Marina Martinique has also experienced a boom in property prices with vacant stands now selling at a premium, with demand exceeding supply.


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